[Pwerhouse]

I am doing a bank reconciliation. In the prior month we made a transfer of $1,426.10 from account A to account B. In the prior month bank rec the $1,426 was an outstanding deposit for bank B. Now in the current month for account B do I do anything with the $1,426? Both accounts are cash accounts.

Am I supposed to make a journal entry for $1,426?

I am doing the bank rec two months later as well. There was no journal entry made originally for the $1,426 to the GL.

Is this an issue?

[morgaine300]

Why was there no journal entry made for this? It's a transaction - it needs an entry at the time it happened. Otherwise your bank rec doesn't even really work - I don't know how it reconciled if it was never recorded.

As for what to do in the second month with account B -- I'm assuming the deposit did go through? If so, it's no longer outstanding and you don't have to do anything with it. It's no different than any other deposit in transit, which I'm sure you've had before. I think you're trying to make it different because it was a transfer, but it's not.

[Pwerhouse]

Thanks for the response. Many transactions and many hours of this I was over complicating things.

Keep it simple!

Thanks

[morgaine300]

You're welcome. Believe it or not, there are many things in accounting which are simple. :-) (And many things which are not... )